This paper presents the 3-dimensional electromagnetic field analysis method and correction of sensor distortion that is used by a motor speed sensor. The magnetic sensors are being expanded due to lower price than the other speed sensors such as resolver and encoder. Magnetic sensor generates sine and cosine waves when the motor rotates. However, the sine and cosine signals are distorted due to magnetic noise, which makes the angle error of the sensor, generated near by the Hall element. This paper defines an optimal design variables by using the Taguchi method to minimize output distortion of the magnetic sensor and permanent magnet. To enhance reliability of the magnetic position sensor from sensitivity error, assembly amplitude mismatch and the electrical angle, 3-Dimensional electromagnetic finite element method and correction algorithm errors were performed in due of the magnetic sensor in order to improve the quality of the initial production model.